Elon Musk Steps Down from Federal Cost-Cutting Role, Citing Bureaucratic Challenges

Elon Musk has announced his resignation from his role as head of the Department of Government Efficiency (DOGE), a position he held as a Special Government Employee under President Donald Trump’s administration. In a post on X (formerly Twitter) dated May 29, Musk expressed gratitude to President Trump for the opportunity but acknowledged that the task of reducing federal expenditures proved more arduous than anticipated.

Musk’s tenure at DOGE was marked by ambitious goals, including an initial aim to cut $2 trillion from the federal budget—a target later adjusted to $150 billion. According to DOGE, the agency claims to have saved taxpayers $175 billion since January 20, 2025, through measures such as workforce reductions and program eliminations. However, these figures have been contested by various news outlets, citing potential inaccuracies and overstatements.

In interviews with The Washington Post and CBS, Musk described the federal bureaucracy as “much worse” than he had expected, labeling his efforts to streamline government operations as an “uphill battle.” He also criticized a substantial tax break package approved by House Republicans on May 22, arguing that it would exacerbate the budget deficit and undermine DOGE’s objectives.

Despite stepping down, Musk indicated that the mission of DOGE would continue to strengthen over time. However, his involvement with DOGE has not been without controversy. A lawsuit filed by 14 states alleges that Musk and DOGE overstepped their authority by accessing government data systems, terminating federal employees, and canceling contracts at federal agencies, actions purportedly in violation of the Constitution.

Musk’s departure from DOGE comes amid concerns about his allocation of time between his various ventures. In a May 28 interview with Ars Technica, he admitted to spending “a bit too much time” on politics, which some critics suggest may have impacted Tesla’s performance. Following his announcement to reduce involvement with DOGE, Tesla’s stock experienced a 5% increase in after-hours trading, despite the company reporting an 80% drop in net income for the first quarter.

As of March 31, Tesla holds 11,509 Bitcoin (BTC), valued at approximately $1.24 billion. The company’s shares are down 5.9% year-to-date, a decline that aligns with trends observed in other major tech firms like Apple, Nvidia, Amazon, and Google.